Exodus to Buy GlobalCenter for $6.5B

Exodus and Global Crossing, GlobalCenter's parent, also signed a 10-year network services agreement

September 29, 2000

1 Min Read

SANTA CLARA, Calif., and HAMILTON, Bermuda -- Exodus Communications,T Inc. [Nasdaq:EXDS] and Global Crossing Ltd. [Nasdaq:GBLX] announcedtoday that their boards of directors have approved a definitive merger agreement under which Exodus® will acquireGlobalCenter Inc., a wholly owned subsidiary of Global Crossing. Exodus will issue a number of common equivalentshares equal to $6.525 billion divided by the average closing price of Exodus stock prior to the closing of thetransaction, subject to a collar. Based on the collar and Exodus'closing stock price of $53.25 on September 27, 2000, thecurrent value of the transaction is approximately $6.1 billion.

Ellen M. Hancock, chairman and chief executiveofficer of Exodus, said, "Today's announcement represents a major strategic milestone for our company. Thiscombination will give us the additional scale, scope and internationalreach to extend our position as the preferred providerof mission-critical web hosting solutions to customers worldwide. Our global network of Internet Data Centers will nowbe 'on net' with Global Crossing's state-of-the-art international IP network, providing Exodus with superior networkquality of service. With GlobalCenter, we will have an expanded customer base into which we can sell ourcomprehensive suite of managed services. These critical advantages, coupled with the extraordinary depth of talentour combination creates, will enable us to continue to provide the leading edge solutions that our customersdemand."


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